Please ... end the prohibition-era mentality

I challenge the assertion of proponents of the Liquor Control Board (LCB) that privatizing it robs Pennsylvania of a valuable cash flow stream. Quite the opposite is true, apparently, according to Wikipedia (citing the PLCB’s own financial statements).

The PLCB’s percentage of actual profit from sales has dwindled from a 7.65 percent profit margin on gross sales in FY 2000–01 to less than 2.5 percent in FY 2009–10. In 2000–01, gross sales were $1,140,203,662 and actual profit from sales was about $78 million. However, with nearly $1.9 billion in sales in FY 2009–10, the board generated only $49.5 million from sales.

Opponents of privatization argue that the PLCB is the goose that lays the golden egg, and although it is claimed the Commonwealth would quickly gain $1.7 billion by selling the liquor stores, keeping the stores public would generate significantly more money over time.

The PLCB’s operating expenses over time, however, the percentage of actual profit from sales has dwindled from a 7.65 percent profit margin on gross sales in FY 2000–01 to less than 2.5 percent in FY 2009–10. In 2000–01, gross sales were $1,140,203,662 and actual profit from sales was about $78 million. However, with nearly $1.9 billion in sales in FY 2009–10, the board generated only $49.5 million from sales.

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“Without an immediate infusion of revenue via new fees or increasing the cost of wine and spirits in the Commonwealth or decreasing the contribution to the general fund as they did for FY 2011-12, the board may end FY 2012-13 still with negative net retained earnings,” Wikipedia states.

Further, “The remaining amounts of revenue . . . is actually generated through the collection of sales tax and the often maligned “Johnstown Flood Tax.” This revenue . . . would continue to be collected by private industry.”

It seems to me that the only possible reason left for keeping this dinosaur is to protect the jobs of unionized workers, some of whom surely would be hired by private industry that replaces them.

In spite of economic arguments, persuasive as they may be, I keep coming back to this: “Why is my state telling me why, when and how I can buy wine, beer and liquor?” Tax it? Sure. Impose prohibition-era mentality on me? Not anymore; please!

Let’s get out of the state liquor business and leave Utah as the only other state in it.